The Dutch firm Brakel Corp NV who was awarded the execution of multi-million dollar hydropower project in Himachal Pradesh has been invited by the state government to ink a pre-implementation agreement (PIA) on this matter. As per the official from power department, the signing of PIA is mandatory for every project. Report says that, the Dutch company will deposit 25 percent upfront premium during the singing of the PIA. If any dispute pops up, Brakel Corp will have to settle it under Indian arbitration laws, said the official.

 

An investment of more than Rs.60 billion is required to set up the hydropower project in Kinnaur district of Himachal Pradesh. The Dutch firm is reported to have already deposited 50 percent of the upfront premium (Rs.1.73 billion) and Rs.210 million as delayed interest. The company will deposit the remaining premium of Rs.1.73 billion in two installments. The Himachal Pradesh government took the decision of signing the deal about two years ago.

 

Commenting on the signing of PIA with the government, Brakel Corp stated that the firm is ready to move the deal ahead. The company however informed that no official invitation has been received by it yet. The multi-million dollar project is expected to get completed by 2017. After the construction work gets over, the Kinnaur hydropower project will generate enough electricity which could meet the state's demand.